Connected TV market to hit 76% by 2015

While their presence was more subtle than 3DTV and not as in-your-face as non-iPad tablets, connected consumer electronics devices were more diverse and pervasive at the 2011 International Consumer Electronics Show in Las Vegas, with every major manufacturer showing off new electronics that have their own built-in apps and can access content from the Internet.

With devices that incorporated complete Internet browsers, HDTVs that offered hundreds of applications, even set-tops that turned current HDTVs into a completely connected device, the theme of combining the home theater set-up with a PC experience was everywhere.

“We’re starting to see some real trends develop here,” said Kurt Scherf, VP and principal analyst with Parks Associates. “And connected TV is not just about online video.”

Consider: In 2010 less than a quarter of all HDTVs were connected, according to research firm Parks Associates. By 2015, Parks believes that number will hit 76% (more than 150 million units). The firm projects that by 2015 there will be more than $8 billion worth of transactions on connected consumer electronics devices, from e-purchases to gaming to VOD and streaming.

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Microsoft to Announce New Slates Aimed at the iPad

A decade ago Bill Gates, founder and former chief executive of Microsoft, presented a new class of computing to the world: a tablet PC that offered a fully functional computer with the “intuitive aspects of pencil and paper.”

Since then, Microsoft has struggled to gain traction with a slate-like device, yet each year the company announces new products, software or operating systems that try to promote a world of Windows-based slate computers.

Next month, at the 2011 Consumer Electronics Show in Las Vegas, Microsoft will give it another try, presenting a slew of new slates that it hopes will offer some competition to the Apple iPad, which has quickly become the leader in this market.

According to people familiar with Microsoft’s plans, Steve Ballmer, Microsoft’s chief executive, is expected to announce a number of these devices when he takes the stage at C.E.S., showcasing devices built by Samsung and Dell, among a number of other manufacturing partners.

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The return of the "Tire Kickers" to CES

Exhibitors at the Consumer Electronics Show typically find the last day - now a Sunday - to be a particularly slow day. Most industry participants do their best to get their meetings out of the way on Thursday and Friday to head home for the weekend. However, the Consumer Electronics Association (CEA) will open the doors once again to consumers on the final day, providing for heavier show floor traffic and perhaps allowing companies to find their next gadget guinea pig. Here's the news from TWICE:

The Consumer Electronics Association (CEA) will invite individuals -consumers -- to become part of CEA, and to celebrate membership they will be able to attend the last day of the 2011 International CES in January.

Outgoing CEA chairman Gary Yacoubian (left) with CEA president/CEO Gary Shapiro at Tuesday's luncheon at the CEA Industry Forum

That was the main surprise in the keynote of Gary Shapiro, president/CEO of CEA, during his keynote speech at Tuesday lunch during the organization's Industry Forum, being held at the Fairmont Hotel, here, in which he discussed the industry, the economy and a little politics.

Consumers will be invited to become members of CEA for the first time -- who will be called Consumer Technology Enthusiasts, or CTEs.

These new members will be able to participate in beta tests of new products, be part of an online community, and be given insider access to the industry, Shapiro said.

CES 2009 - our feet hurt but our heads are full

The Monday after CES. A day to overwhelm our marketing team with the business cards and to load up the press kits into the right folder. I'm also cleaning out my backpack of all of the assorted chotchky received at the show. This year, I was grateful to see the introduction of the 2 GB flash drive holding a press kit. I had been carrying around a 1 GB flash drive for a couple of years, so I appreciate the upgrade.

CEA says that the final tally of attendees will be north of 110,000. That's a pretty big decline from the 130,000 estimate made prior to the show. I still found the South Hall (where I spent most of my time) to be well-trafficked. It was odd, however, to get to the airport Saturday afternoon and find zero line at the check-in desk and security lines that looked like the middle of the week at DFW. For those of us who have developed sharp elbows and quick tempers from previous CES events, I'm not saying I'm complaining.

Our analysts were tracking the key announcements from the show, so we'll be posting them throughout today and the rest of the week. I'll be delivering a Webcast - Key Trends in Consumer Electronics - on January 21 that will provide highlights from our time at the show. I hope that your travels were safe and your CES was worthwhile.

Hot Topic for 2009: Widgets on the TV

Yahoo! and Intel plan to demonstrate their TV Widget Channel solution at the upcoming Consumer Electronics Show in Las Vegas. The channel will allow users to view photos and internet videos directly on their TVs as well as create customized tickers to show news, weather and sports on their TVs. Initially, the technology will be available on several models of Samsung and Toshiba TVs. However, both Yahoo! and Intel expect more consumer electronics (CE) partners in the near future.

Needless to say, bringing internet features to the TV is a gamble, as Microsoft, Apple, Sony and many others will attest. However, the idea has merit and can be successful with consumers if the provider offers the right features.

A recent Parks Associates’ survey, TV 2.0: The Consumer Perspective, finds that a fair number of consumers are indicating interest in the ability to have Internet-like experiences on their televisions. According to the survey results, 20% of U.S. adults in broadband households (consumers) express a strong interest in having widgets on their TVs that allowed them to customize on-screen tickers to display information such as news, sports, weather and traffic. Twenty three percent desire media sharing capability on their TVs (for example, the ability to view pictures from a photo sharing site).

Consumers also want to interact with one another via their TVs, to enhance their viewing experience. Data from the TV 2.0: The Consumer Perspective study indicates that 14% of consumers are interested in ability to chat with other consumers who are viewing the same program (25% of 18 to 24 year olds), and 13% are interested in ability to recommend (and receive recommendations) about programs (22% of 18 to 24 year olds).

It is thus safe to conclude that Yahoo! and Intel are moving in the right general direction and many similar products will be unveiled in the near future. Companies contemplating launching such products and services must keep several things in mind, however, if they hope to be successful:

1. New services must be very simple to set up and use
2. Every service/function must have a distinct purpose that makes consumers’ life easier
3. A solid business model must accompany every new service